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  • Writer's pictureAhsan Malyk

How Much is Tesla Insurance?

Due to their high repair costs, Teslas are more expensive to insure than many other vehicles, raising the collision insurance price. Your location, driving record, the amount of coverage you select, and the Tesla model and trim you select all affect the cost of your policy.

Tesla Insurance, the company's own insurance offering, is the least expensive insurer for Tesla vehicles. However, it's now only accessible in nine states, with some restrictions that not all drivers will appreciate.

How much does Tesla insurance cost?

A new Tesla typically costs $3,947 a year to insure. However, the cost varies greatly depending on the insurer you select and the vehicle you own.

The cheapest Tesla model to insure is the most recent Model Y. It's not the most economical vehicle Tesla produces, but it is a crossover that is a little bigger than the Model 3, which costs less. And we've discovered that the cheapest insurance rates are frequently obtained for crossover-style automobiles.

The Model S is the most expensive Tesla to insure, costing an average of $4,956 a year for the base model. The table below compares insurance costs for each new Tesla model for a hypothetical Texas driver using estimates from five of the nation's leading insurance providers, including Tesla.

Which organisations provide the most affordable insurance for a Tesla?

In our analysis of the top insurers, Tesla Insurance provided the most affordable auto insurance rates for insuring a Tesla in Texas, at an average premium of $2,030 per year for a new Tesla, which is 48% cheaper than the national average. With an average cost of $2,626 among the insurers that were offered nationally, State Farm was both the second-cheapest option and the most affordable.

Tesla insurance: Model-specific rates

While the average annual premium for new Tesla car insurance is $3,732, the cost varies greatly per model. The Model Y is the least expensive Tesla to insure, with an average annual insurance cost of just $3,057.

Model 3

The Model 3 sedan, which presently starts at $44,990 before incentives or add-ons, is the least priced Tesla model to purchase. However, the cost of insurance is still somewhat high, coming in at $3,386 per year for the most recent base model.

The more expensive Model 3 models, which have bigger batteries and faster speeds, can increase your insurance costs by several hundred dollars.

Y model

The Car Y has the lowest average annual premium of any Tesla model, coming in at just $3,057. This is 13% less than the rate for all new Teslas combined.

In comparison to full-size SUVs and larger, more expensive full-size SUVs, compact crossovers like the Model Y typically have the most reasonable rates.

Design S

The Model S, which was Tesla's first mass-produced vehicle and has an average annual insurance cost of $4,956, is also its most expensive vehicle to insure. Without any reductions or extras, the Model S starts at $94,990.

Surprisingly, although only by $93 annually, the top-of-the-line "Plaid Mode" Model S, with a top speed of 175 MPH, is less expensive to insure than the base model.

X Model

The Model X, Tesla's premium full-size SUV, has an average annual insurance cost of $4,275. This is $759 higher than the average cost for all models.

Tesla's own insurance policy, with an average annual cost of $2,095 that we identified, is the most affordable provider for the Model X.

Only current Tesla owners have access to the company's own insurance policy, which is currently offered in nine states.

Tesla Insurance program review

Tesla's own insurance costs are significantly less expensive than those of rival insurers. All new Tesla vehicles had an average rate of $2,030 per year, which is 49% cheaper than the average rate we discovered.

In all states where it is available, with the exception of California, Tesla Insurance evaluates your driving risk primarily based on the Safety Score of your car, ignoring the majority of the factors that nearly all other insurers use to set your rates.

Drivers with high safety ratings can save even more money; for example, a perfect score of 100 entitles you to a 37% discount off the standard premium.

Tesla doesn't take any of the following into account when determining auto insurance rates:

  • Accident history

  • Tickets (for instance, for speeding)

  • Claims

  • Credit

  • Age

  • Gender

  • Status of Married

The major issue to Tesla Insurance is that it only offers coverage to some non-Tesla cars. Therefore, if you have more than one automobile, you might need to keep two different car insurance policies, which means enrolling in several insurance plans and forgoing a potential bundle discount.

Where can I buy Tesla insurance?

Only Tesla owners in eleven states have access to Tesla's own insurance coverage. By the end of 2022, Tesla aims to offer insurance in 45 states.

  • California* Arizona Colorado

  • Illinois

  • Montgomery, Nevada

  • Ohio

  • Oregon

  • Utah, Texas, and Virginia

Unlike policies offered in other states, Tesla insurance in California doesn't have the same distinctive features.

Rates for Tesla Insurance based on Safety Score

Even though almost all drivers can afford Tesla's insurance prices, your cost will decrease even further if you can keep up a high Safety Score. With a perfect score of 100, you may lease a new Model 3 for about $887 per month (the average annual cost we discovered was $3,386).

Tesla changes prices in increments of five Safety Score points. As a result, if your average score is between 95 and 99, your annual cost will rise to $1,040.

Why is insurance for Teslas so expensive?

Due to their high purchase and maintenance costs, Tesla vehicles are expensive to insure. Due to their high repair and maintenance expenses, which are more expensive than those of other luxury vehicles or EVs, Teslas have very high accident coverage prices.

Only Tesla-approved body shops are authorized to repair Teslas. Costs for obtaining the necessary training and tools are much greater. Due to their more expensive equipment and technology, electric automobiles are more expensive to maintain and insure.

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